Kiwibank has dropped its fixed home loan rates, becoming the first bank to offer fixed rates up to a five-year term below 4%.
Kiwibank’s two-year fixed ‘special’ rate has been dropped to 3.59% from 3.65%, and its four year and five year fixed ‘special’ rates have both been cut to 3.99%.
Standard rates also dropped for the two, four and five-year fixed terms - the two year standard rate is now 4.34%, and the four and five year rates are both 4.74%.
All rates are available with a minimum 20% deposit, with the specials also available to Welcome Home Loan customers. They will be available from Monday 2 September.
The new four and five-year ‘special’ rates have put Kiwibank well ahead of the pack in terms of competition, with ASB’s and The Cooperative Bank’s 4.19% four-year rate being the next best deal. Its two-year ‘special’ rate is currently only matched by ANZ, with China Construction Bank’s 3.65% rate following close behind.
This may be the first time that four and five-year fixed rates have dropped below 4%, and borrowers will no doubt be watching Kiwibank’s competitors closely for further developments. A further OCR cut to 0.75% in November has also been forecast by several major banks, a move which would almost definitely help any further rate cuts along.